PRESS RELEASE : New code to prevent employers using fire and rehire tactics – PwC comments [January 2023]
The press release issued by PWC on 24 January 2023.
Commenting on the new code published today by The Department for Business, Energy & Industrial Strategy, Chris Perkins, UK and International Employment Law Partner at PwC, says:
“The plan for a new statutory code proposes strong action against employers who use the controversial dismissal practice of ‘fire and rehire’. This strategy for changing employment terms and conditions is already high risk for employers, with the potential for employees to bring unfair dismissal and other claims against the organisation. Not only can this potentially result in financial claims, but the reputational impact of the ‘fire and rehire’ practice can be detrimental to an organisation as an employer.”
“The code proposes a rigorous process of communicating and consulting on changes to contracts of employment, along the lines of the familiar requirements for undertaking collective redundancies and transfers of undertaking. Employers will need to introduce more formal, and well documented procedures to demonstrate compliance with these new guidelines; as if employers fall foul of the new code, there will be major financial consequences.”
Alastair Woods, Workforce Transformation Partner at PwC, comments:
“The proposed statutory draft code provides clear guidance for employers that reinforces the need for them to take a strategic and holistic approach to managing their workforce in a tough economic climate. PwC’s recent CEO survey highlights how seriously business leaders are taking the shortage of skilled and talented workers alongside the tough conditions they are operating in. As such, employers need to continue to focus their approach on better workforce planning, upskilling and acting as a responsible employer in a labour market that continues to be tight.”
